The Sisters of St. Francis of Philadelphia

Why an Investment Portfolio?

An investment portfolio enables the Sisters of St. Francis of Philadelphia to extend our Franciscan spirit and further our mission as we help improve the social and economic well-being of financially at-risk communities. Through this portfolio we are able to effect systemic change to promote sustainability, justice and human dignity and to advocate for the preservation and protection of the environment for present and future generations. In addition, our investments enable us to exert influence on the corporate world through shareholder advocacy.

Through our investments we are able to partner with organizations such as Latino Community Credit Union (LCCU) (Cooperativa Communitaria Latina De Credito). LCCU is a community-based, member-owned non-profit organization founded in North Carolina in 2000. It has become a national model for serving immigrant communities and those who have not been able to participate in the financial mainstream of the U.S. economy.

LCCU’s core products include “lending for first mortgages, automobiles, personal loans, credit cards and credit-builder loans; savings through share accounts, money markets, share term certificates and checking accounts; transactions, such as check-cashing, international remittances, debit cards, ATM access, telephone banking, and money orders; and financial education, through twice weekly classes in each branch, one-on-one member counseling and free credit counseling over the telephone.”

Latino Community Credit Union’s motto is “Progress with Dignity--All human beings, including immigrants to this country should be treated with dignity and have the right to basic financial services and education.” In collaboration with the National Endowment for Financial Education (NEFE), LCCU developed a comprehensive financial education curriculum,called Building a Better Future, available in both English and Spanish. 

What is an Investment Portfolio?

An investment portfolio is an aggregate of investments such as stocks and bonds. In 1971 our General Council approved the engagement of an investment administrator; in 1974 the investment portfolio was established. Until this time, monies were invested in savings accounts, certificates of deposit and the Drexel Trust.

In 1980, the Committee for Responsible Investment (CRI) was established to assist our congregation in fulfilling its social responsibility for its financial resources. It is the responsibility of the committee and staff to monitor the investment portfolio for consistency with our mission, engage in shareholder advocacy, increase membership awareness on issues of social responsibility, communicate with investment managers and advisors, and process community development investments.

The Director of Corporate Social Responsibility is accountable to the Corporation of the Sisters of St. Francis of Philadelphia and maintains ongoing communication with the Congregational Treasurer, the Financial Advisory Board, and the Religious Charitable Trustees.

Using our investments and working with other mission-driven organizations such as The Interfaith Center on Corporate Responsibility (ICCR), Partners for the Common Good, and the Latino Community Credit Union, we believe that we are able to bring about systemic change and promote sustainability, justice, and human dignity.

What is investing for community development?

Investing for Community Development is a process for lending capital to community-based organizations which have difficulty obtaining credit from traditional lending institutions. Credit unions, community banks, loan funds and other community- established businesses help to identify jobs, housing needs, and a host of other services and entrepreneurial opportunities. These investments usually provide lower financial returns that enable us to live out our most deeply held values.

Why do we invest in this way?

Consistent with our mission and values, we have social, as well as financial objectives for the return on our investments. The social objectives are realized through monitoring the social performance of corporations, initiating shareholder advocacy actions to address social concerns, and when necessary, restricting our investments in certain segments of business and in certain companies whose practices we are called to challenge. In addition, investing for community development focuses on economic development and the empowerment of individuals to work for social justice through organizations whose vision and mission is complementary to the vision and mission of the Sisters of St. Francis of Philadelphia. 

How are these investments selected and monitored?

The CRI (Committee for Responsible Investment) selects applicants whose goals are compatible with the values and mission of the congregation and whose objectives meet several of our social criteria. These are to:

• improve the social and economic well-being of low-to-moderate
  income communities

• provide community participation and the possibility of self-determination

• have the capacity to complete their projects but have limited or no access to traditional lenders

• foster equality and justice for all people, particularly women, children, and persons of color

• promote sustainability of Earth and all natural resources

• recognize the sacredness of diversity in creation and in all cultures.

Priority is given to applications from geographic areas where the Sisters of St. Francis of Philadelphia and Franciscan Companions minister.

How are these investments allocated?

Potential borrowers must meet certain financial as well as social criteria developed from the congregation’s values, mission, and social concerns.

Currently, almost $2.5 million is invested in Community Development Investments as indicated on the chart.